Reliance Steel misses Q3 adjusted profit estimates due to uncertain trade policies

Reliance

22/10/2025 21:19

Overview

Reliance Steel Q3 net sales rise 6.8% yr/yr, achieving record tons sold

Adjusted EPS for Q3 misses analyst expectations

Company repurchased $60.9 mln of common stock during Q3

Outlook

Reliance expects Q4 2025 tons sold to be up 3.5% to 5.5% YoY

Company anticipates Q4 2025 non-GAAP EPS of $2.65 to $2.85

Reliance expects Q4 2025 average selling price per ton to be flat

Result Drivers

RECORD TONS SOLD - Reliance achieved record tons sold in Q3, outperforming industry trends by leveraging inventory and processing capabilities

TRADE POLICY UNCERTAINTY - Uncertainty in trade policy and readily available inventory created competitive market conditions, impacting selling prices and margins

AEROSPACE AND SEMICONDUCTOR CHALLENGES - Excess inventories in aerospace and semiconductor markets affected profitability, though defense and space sectors remained strong

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted EPS
Miss
$3.64
$3.68 (7 Analysts)
Q3 EPS
$3.59
Q3 Adjusted Gross Margin
28.30%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the iron & steel peer group is "buy."

Wall Street's median 12-month price target for Reliance Inc is $325.00, about 14.3% above its October 21 closing price of $278.65

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nGNX3SGDNr

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)